Exhibit 99.1
(ACC) American Campus Communities, Inc.
Reports 2004 Fourth-Quarter and Full-Year Financial Results
AUSTIN, Texas--(BUSINESS WIRE)--March 1, 2005--American Campus
Communities, Inc. (NYSE:ACC), today announced the following financial
results for the quarter and year ending December 31, 2004.
Highlights
-- Fourth Quarter 2004 Net Income of $3.3 million and FFO of
$0.48 per fully diluted share exceeds previous guidance.
-- Fourth Quarter 2004 FFOM per fully diluted share of $0.36 in
line with previous guidance.
-- Fourth Quarter 2004 Net Operating Income ("NOI") for
same-store owned off-campus properties increased 15 percent
over fourth quarter 2003.
-- Third party management services revenues in fourth quarter
2004 increased 115 percent over prior year quarter.
-- Closed and commenced construction on Cullen Oaks, a $17.0
million on-campus participating property at the University of
Houston, scheduled to open in Fall 2005.
-- Assumed third-party management responsibilities of two
properties serving students attending Florida State University
and Central Michigan University.
Fourth-Quarter 2004 Operating Results
Revenue for the 2004 fourth quarter totaled $18.2 million, up 19
percent from $15.2 million in the 2003 fourth quarter. Net income for
2004 fourth quarter, totaled $3.3 million, or $0.26 per fully diluted
share, compared with a net loss of $0.4 million in the 2003 fourth
quarter. The increase in net income was primarily due to the opening
of new, owned properties at Temple University, California State
University at Fresno and California State University at San Bernardino
in August 2004. FFO for the quarter totaled $6.2 million, or $0.48 per
fully diluted share. FFOM totaled $4.5 million, or $0.36 per fully
diluted share. A reconciliation of FFO and FFOM to net income is shown
on Table 4. NOI for same-store owned off-campus properties was $4.6
million in the 2004 fourth quarter, up $0.6 million from the 2003
fourth quarter.
"Our strong fourth-quarter performance benefited from the opening
of three new developments, a 15 percent increase in same-store NOI on
our owned off-campus properties, and occupancy rates exceeding 97
percent for our owned properties," said Bill Bayless, ACC President
and Chief Executive Officer. "We're also continuing to see numerous
development and acquisition opportunities that complement our growth
strategy of owning high-quality properties in close proximity to
college and university campuses."
Full-Year 2004 Operating Results
For the year ended December 31, 2004, the company's revenue
totaled $60.8 million, an increase of 6 percent over revenue of $57.1
million in 2003. A net loss of $1.3 million was reported for the 2004
full year, compared with a net loss of $0.9 million a year-earlier.
FFO and FFOM for the 2004 full year totaled $8.6 million and $6.5
million, respectively. A reconciliation of FFO and FFOM to net income
is shown in Table 4. NOI for same-store owned off-campus properties in
2004 totaled $16.4 million, compared to $16.2 million in 2003.
Full-year 2004 results reflect expenses totaling approximately $2.6
million related to certain transactions occurring in conjunction with
the company's IPO and related formation transactions. Excluding the
charges related to the IPO and formation transactions, net income, FFO
and FFOM for the year ended December 31, 2004 would have been $1.3
million, $11.2 million and $9.1 million, respectively.
Recent Activities
Since the end of the 2004 fourth quarter, the company:
-- Completed the disposition of its University Village property
to California State University, San Bernardino for an option
price of $28.3 million.
-- Closed the acquisition of five student housing properties in
Florida containing a total of 1,656 beds for an aggregate
purchase price of approximately $53.5 million, including the
assumption of approximately $35.4 million in fixed-rate
mortgage debt.
-- Signed an agreement to purchase Cityparc at Fry Street, a
418-bed student housing community located in close proximity
to the University of North Texas, to be acquired for a
purchase price of approximately $19.2 million, including
approximately $11.8 million of existing fixed-rate mortgage
debt.
-- Signed an agreement to purchase the Exchange at Gainesville, a
1,044-bed student housing community located in close proximity
to the University of Florida, for a total purchase price of
approximately $47.5 million. The property is unencumbered by
debt.
2005 Outlook
Based on the judgment and current expectations of the management
team, the company is narrowing the range of its previous 2005 FFOM
guidance and is lowering its previous 2005 FFO guidance. This is due
to several factors, including :
-- A delay in closing the acquisition of the five-property
portfolio in Florida, which we had anticipated closing in
mid-December 2004 and was closed in February 2005, this
impacted 2005 FFO and FFOM by approximately 3 cents per share.
-- The exercise of the option by California State University -
San Bernardino to purchase our University Village property,
which closed on January 5, 2005. This resulted in capital
being inactive pending redeployment which lowered FFO and FFOM
by approximately 3 to 7 cents per share.
-- Our previous guidance had treated the development fee revenue
from the Cullen Oaks Phase II project as third party service
revenue as at that time we were pursuing this project in that
structure. Our current guidance reflects this as an on-campus
participating property structure and accordingly this
development fee revenue is substantially eliminated in
consolidation - this resulted in lowering of FFO by
approximately 4 to 5 cents per share.
The company now expects that full-year 2005 net income will range
from $0.72 to $0.78 per fully diluted share, FFO will range from $1.42
to $1.50 per fully diluted share, and FFOM will range from $1.32 to
$1.42 per fully diluted share. A reconciliation of the range provided
for projected net income to projected FFO and FFOM for the year ending
December 31, 2005 is shown in Table 5. We expect that the company's
financial results for the year ended December 31, 2005 will be
affected by national and regional economic trends and events, the
acquisition of properties, the ability of the company to be awarded
development projects and the timing of such awards, the amount of
income recognized by the taxable REIT subsidiary and any corresponding
income tax expense, and other factors.
Supplemental Information and Earnings Conference Call
Supplemental financial and operating information, as well as this
earnings news release, is available at the investor relations section
of American Campus Communities' website,
www.americancampuscommunities.com. In addition, the company will host
a conference call to discuss fourth quarter results and the 2005
outlook on Wednesday, March 2, 2005 at 11:00 a.m. EST (10 a.m. CST).
To participate by telephone, call 800-810-0924 or 913-981-4900 at
least five minutes prior to the call.
To listen to the live broadcast, go to
www.americancampuscommunities.com or www.fulldisclosure.com at least
15 minutes prior to the call so that required audio software can be
downloaded. Informational slides to accompany prepared remarks during
the conference call as well as a supplemental analyst package can be
accessed at the websites. A replay of the conference call will be
available beginning two hours after the end of the call until March 9,
2005 by dialing 888-203-1112 or 719-457-0820, pass code 9400162. The
replay also will be available for 30 days at
www.americancampuscommunities.com and at www.fulldisclosure.com.
About American Campus Communities
American Campus Communities, Inc. is one of the largest
developers, owners and managers of high-quality student housing
communities in the United States. The company is a fully integrated,
self-managed and self-administered equity real estate investment trust
(REIT) with expertise in the design, finance, development,
construction management, leasing and management of student housing
properties. American Campus Communities owns and manages a portfolio
of 22 student housing communities containing approximately 14,100
beds. Including its owned properties, the company provides management
and leasing services at a total of 41 properties with more than 25,400
beds located on or near college and university campuses. Additional
information is available at www.americancampuscommunities.com.
Forward-Looking Statements
This news release contains forward-looking statements, which
express the current beliefs and expectations of management. Except for
historical information, the matters discussed in this news release are
forward-looking statements and can be identified by the use of the
words "anticipate," "believe," "expect," "intend," "may," "might,"
"plan," "estimate," "project," "should," "will," "result" and similar
expressions. Such statements are based on current expectations and
involve a number of known and unknown risks and uncertainties that
could cause our future results, performance or achievements to differ
significantly from the results, performance or achievements expressed
or implied by such forward-looking statements.
Our actual results could differ materially from those anticipated
in these forward-looking statements as a result of various factors,
including risks and uncertainties inherent in the national economy,
the real estate industry in general, and in our specific markets; the
effect of terrorism or the threat of terrorism; legislative or
regulatory changes including changes to laws governing REITS; our
dependence on key personnel whose continued service is not guaranteed;
availability of qualified acquisition and development targets;
availability of capital and financing; rising interest rates; rising
insurance rates; impact of ad valorem and income taxation; changes in
generally accepted accounting principals; and our continued ability to
successfully lease and operate our properties. While we believe these
forward-looking statements are based on reasonable assumptions, we can
give no assurance that our expectations will be achieved. These
forward-looking statements are made as of the date of this news
release, and we undertake no obligation to update publicly or revise
any forward-looking statement, whether as a result of new information,
future developments or otherwise.
Table 1
American Campus Communities, Inc. and Subsidiaries
Consolidated & Combined Balance Sheets
(unaudited, dollars in thousands, except share and per share data)
December 31,
-----------------------------
2004 2003
-------------- --------------
Assets
Investments in real estate:
Owned off-campus properties, net $272,450 $222,907
On-campus participating properties,
net 68,064 77,689
-------------- --------------
Investments in real estate, net 340,514 300,596
Cash and cash equivalents 4,050 5,227
Restricted cash and short-term
investments 9,816 9,503
Student contracts receivable, net 2,164 2,355
Other assets 11,084 12,885
-------------- --------------
Total assets $367,628 $330,566
============== ==============
Liabilities and stockholders' and
Predecessor owners' equity
Liabilities:
Mortgage loans, bonds payable and
lines of credit $201,014 $275,598
Accounts payable and accrued expenses 5,443 3,966
Other liabilities 20,294 23,092
-------------- --------------
Total liabilities 226,751 302,656
Minority interests 2,648 252
Stockholders' and Predecessor owners'
equity:
Common stock, $0.01 par value,
800,000,000 shares authorized,
12,615,000 shares issued and
outstanding 126 --
Additional paid in capital 136,259 --
Accumulated earnings and dividends 1,802 --
Accumulated other comprehensive income
(loss) 42 (197)
Predecessor owners' equity -- 27,855
-------------- --------------
Total stockholders' and Predecessor
owners' equity 138,229 27,658
-------------- --------------
Total liabilities and stockholders' and
Predecessor owners' equity $367,628 $330,566
============== ==============
Table 2
American Campus Communities, Inc. and Subsidiaries
Consolidated & Combined Statements of Operations
(unaudited, dollars in thousands, except share and per share data)
Quarter Ended December 31,
------------------------------
2004 2003
--------------- --------------
Revenues:
Owned off-campus properties $10,455 $7,699
On-campus participating properties 5,595 5,578
Third-party development services 1,065 1,600
Third-party management services 798 371
Resident services 268 --
--------------- --------------
Total revenues 18,181 15,248
Operating expenses:
Owned off-campus properties 4,446 3,728
On-campus participating properties 2,082 2,099
Third-party development and management
services 1,422 1,448
General and administrative 1,314 1,561
Depreciation and amortization 2,823 2,237
Ground lease 148 187
--------------- --------------
Total operating expenses 12,235 11,260
--------------- --------------
Operating income 5,946 3,988
Non-operating income and (expenses):
Interest income 25 15
Interest expense (3,550) (4,299)
Amortization of deferred financing
costs (232) (140)
Other non-operating income 653 --
--------------- --------------
Total non-operating expenses (3,104) (4,424)
--------------- --------------
Income (loss) before taxes, minority
interests and discontinued operations 2,842 (436)
Income tax provision (29) --
Minority interests (30) 41
--------------- --------------
Income (loss) from continuing operations 2,783 (395)
Discontinued operations:
Income attributable to discontinued
operations 557 2
Gain from disposition of real estate -- 16
--------------- --------------
Total discontinued operations 557 18
--------------- --------------
Net income (loss) $3,340 $(377)
=============== ==============
Earnings per share, basic and fully
diluted:
Net income per share $0.26
===============
Weighted average common shares
outstanding:
Basic 12,622,145
===============
Diluted 12,743,145
===============
Table 3
American Campus Communities, Inc. and Subsidiaries
Consolidated & Combined Statements of Operations
(unaudited, dollars in thousands)
Year Ended December 31,
-----------------------------
2004 2003
-------------- --------------
Revenues:
Owned off-campus properties $35,115 $31,514
On-campus participating properties 17,418 16,482
Third-party development services 5,803 7,939
Third-party management services 2,105 1,189
Resident services and other 382 12
-------------- --------------
Total revenues 60,823 57,136
Operating expenses:
Owned off-campus properties 16,861 15,272
On-campus participating properties 7,900 7,925
Third-party development and management
services 5,543 5,389
General and administrative 5,234 2,749
Depreciation 9,973 8,868
Ground lease 812 489
-------------- --------------
Total operating expenses 46,323 40,692
-------------- --------------
Operating income 14,500 16,444
Non-operating income and (expenses):
Interest income 82 71
Interest expense (16,698) (16,940)
Amortization of deferred financing
costs (1,211) (558)
Other non-operating income 927 --
-------------- --------------
Total non-operating expenses (16,900) (17,427)
-------------- --------------
Loss before taxes, minority interests
and discontinued operations (2,400) (983)
Income tax benefit 728 --
Minority interests 100 16
-------------- --------------
Loss from continuing operations (1,572) (967)
Discontinued operations:
Income attributable to discontinued
operations 272 7
(Loss) gain from disposition of real
estate (39) 16
-------------- --------------
Total discontinued operations 233 23
-------------- --------------
Net loss $(1,339) $(944)
============== ==============
Table 4
American Campus Communities, Inc. and Subsidiaries
Calculation of FFO and FFOM
(unaudited, dollars in thousands, except share and per share data)
Quarter Ended Year Ended
-------------- --------------
12/31/04 12/31/04
-------------- --------------
Net income (loss) $3,340 $(1,339)
Minority interests 30 (100)
Loss from disposition of real estate -- 39
Real estate-related depreciation and
amortization 2,791 10,009
-------------- --------------
Funds from Operations ("FFO") 6,161 8,609
Elimination of operations from on-campus
participating properties:
Net income from on-campus
participating properties (1,179) (270)
Amortization of investment in
on-campus participating properties (871) (3,531)
-------------- --------------
(2,050) (3,801)
Modifications to reflect operational
performance of on-campus participating
properties:
Our share of net cash flow (a) 148 772
Management fees 274 860
On-campus participating properties
development fees (b) 15 15
-------------- --------------
Impact of on-campus participating
properties 437 1,647
-------------- --------------
Funds from Operations--Modified for
operational performance of on-campus
participating properties ("FFOM") $4,548 $6,455
============== ==============
FFO per share--basic $0.49
==============
FFO per share--diluted $0.48
==============
FFOM per share--basic and diluted $0.36
==============
Weighted average common shares
outstanding:
Basic 12,622,145
==============
Diluted 12,743,145
==============
(a) 50 percent of the properties' net cash available for distribution
after payment of operating expenses, debt service (including
repayment of principal) and capital expenditures. Amounts indicate
actual cash received for the year-to-date periods and amounts
accrued for the interim periods.
(b) Development and construction management fees related to the Cullen
Oaks Phase II on-campus participating property.
Table 5
American Campus Communities, Inc. and Subsidiaries
2005 Outlook(a)
(unaudited, dollars in thousands, except per share data)
Low High
-------------- -------------
Net income $9,200 $9,900
Gain on disposition of property (5,400) (5,600)
Minority interests 50 150
Depreciation and amortization 13,900 14,100
Amortization of intangible acquired
assets 400 600
-------------- -------------
Funds from Operations ("FFO") 18,150 19,150
Elimination of operations of on-campus
participating properties:
Net income from on-campus
participating properties (500) (400)
Amortization of investment in
on-campus participating properties (3,500) (3,500)
-------------- -------------
(4,000) (3,900)
Modifications to reflect operational
performance of on-campus participating
properties:
Our share of net cash flow 800 900
Development fees earned on Cullen Oaks 1,050 1,100
Management fees 800 900
-------------- -------------
Impact of on-campus participating
properties 2,650 2,900
-------------- -------------
Funds from operations--Modified for
operational performance of on-campus
participating properties ("FFOM") $16,800 $18,150
============== =============
Weighted average common shares
outstanding--diluted 12,744 12,744
============== =============
Net income per share--diluted $0.72 $0.78
============== =============
FFO per share--diluted $1.42 $1.50
============== =============
FFOM per share--diluted $1.32 $1.42
============== =============
(a) Assumes that (1) the company will complete current contracted
acquisitions by mid-year at current contract terms without effect
of fair value adjustments that may be necessary, (2) University
Village at Sweet Home will open on-time and on-budget, and that 50
percent of the project costs will be permanently financed upon
completion, (3) the on-campus participating construction property
Cullen Oaks Phase II will open on-time and on-budget, (4) the
company will enter into contracts for third-party development and
construction projects that generate revenues consistent with 2004
levels, (5) the 2005-2006 academic year lease-up will be at
similar rates and occupancy levels as experienced in the current
academic year, (6) the cost of Sarbanes-Oxley compliance at 2005
year-end will be approximately $0.5 million, and (7) the interest
rate on our floating rate debt will not increase more than 75
basis points in 2005.
CONTACT: American Campus Communities, Inc., Austin
Mark J. Hager, 512-732-1000